Permian to help restore US onshore oil output growth – Oil & Gas Journal

Rystad Energy believes the Permian basin will be the primary catalyst to restore US onshore oil production growth by November.The oil and gas consulting service bases the projection in part on its own data showing US Lower 48 oil production was 120,000 b/d higher in August compared with the US Energy Information Administration’s estimates in its Short-Term Energy Outlook for the month.The upward revisions coincide with increased drilling activity in the Permian, where 62 more rigs have started operations since May 27, according to data published Aug. 26 by Baker Hughes Inc. (OGJ Online, Aug. 26, 2016). The West Texas and southeastern New Mexico basin has accounted for more than two thirds of all US rig count increases during the country’s recent rebound.Rystad notes the Permian’s current horizontal drilling activity is comparable to levels observed during the final three quarters of 2015. Additional completion work on drilled but uncompleted (DUC) wells also has been initiated.

Source: Rystad: Permian to help restore US onshore oil output growth – Oil & Gas Journal

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